Who Has the Cheapest Car Insurance?

The search for the right insurance company can be daunting. There always seems to be another provider who promises to beat the rates of your current company. But what criteria actually determine who has the right deal for you? It’s more than just comparing quotes. Let’s look at some of the ways to calculate rates and see which really has the lowest cost.

Note: this piece evaluates criteria for larger companies. There are hundreds of smaller insurance companies, which we recommend researching on your own. Websites like iSelect.com.au allow you to easily and quickly research car insurance companies of all sizes and calibers. Many of these companies often provide more than just car insurance, too.

4 Major Types of Car Insurance

There are four types of coverage you can select from when determining your car insurance. These are going to be your choices when reviewing your coverage options.

Comprehensive car insurance is the first choice. It covers costs associated with your vehicle and other vehicles involved in an accident, regardless of who is to blame. This insurance can also cover weather-related damages and even theft. These tend to be the most expensive policies, but they do cover more issues as they arise. Whether someone dings your side mirror or you need help removing overspray from car paint, comprehensive car insurance policies will have you covered.

Another type of coverage is third-party property insurance. These policies cover costs for vehicles and property of other people, but not your personal repairs if you are at fault for the accident. These avoid out-of-pocket payments for others but will leave you having to replace any of your items that are damaged.

An extension of property policies is third-party fire and theft coverage. This insurance covers the costs of fire-related damage, as well as stolen vehicles. Again, this only applies if the damages are not your own fault.

The final type of coverage is compulsory third-party insurance. This will pay for people who are seriously injured while driving. There are limited regions of Australia that offer this coverage, so be sure you live in an area that allows it before expecting to purchase it.

Now that you know a little about the types of coverage, below are some factors you'll want to evaluate when finding the cheapest insurance rates.

Speeding Tickets

These common infractions can have implications on your wallet beyond just the ticket. Insurance policies can rise from your receiving just one speeding ticket. Multiple infractions can lead to higher rates, as well.

DUI

These traffic incidents are known to increase coverage prices. Keeping these off of your record will drastically reduce your insurance costs.

Credit Score

Nope, your driving record isn’t the only factor that impacts how much you’ll pay for coverage. The difference between good credit and poor credit can mean over $1,500 annually. Maintaining a healthy credit score can reduce your out-of-pocket expenses.

Life Changes

Did you just move? Or maybe you recently got married? Major life events can impact your insurance costs. Living in areas that report fewer accidents and being married can significantly lower them.

Look and Ask for Changes

There are constant bargains and discounts being offered. See if your provider offers special deals or consolidation offers. If you are feeling lucky, ask your agent if there are ways to lower your rates.

Cut Coverage

Another way to lower your rates is to lower your coverage. If you are carrying full coverage, switching to liability and third-party policies would reduce out-of-pocket expenses. Putting seasonal coverage on a vehicle you only drive in the summer could also lessen your financial obligations.There are several companies to pick from when you are looking for the cheapest coverage. Research the market and see if there are any options with your current company, and you’ll be able to find who has the cheapest insurance for you.